Tag: bulk cash smuggling

There is an interesting news release from CBP about some money seizures in Philadelphia that goes beyond the usual “facts-only” narrative style and standard statements about the role of CBP in a typical CBP news release. I find it so interesting, in fact, that I am quoting it in full and providing my own commentary in red below:

Philadelphia — International travelers who arrive or depart the United States in possession of more than $10,000 are required to report all currency to Customs and Border Protection (CBP) officers and complete a Treasury Department Financial Crimes Enforcement Network (FinCEN) form. Those who deliberately refuse to comply with this federal currency reporting requirement face hefty consequences, from mitigated penalties to having their currency seized.

This is not quite right, because there are others who “face hefty consequences” apart from those who “deliberately refuse to comply.” This includes people who are ignorant or misinformed about the monetary instrument reporting requirements, people who do not know how much money they are carrying — which could be because they did not count it or forgot it was in a pocket on a suitcase from a prior trip, or people who do not know they are over the limit because they are carrying foreign currency and do not know the exchange rate.

My point: deliberate refusal is just one way to get your money seized. It is definitely not the only way to get money seized, which is what Customs says in this news release. The reporting requirement law is written so that even unknowing violations are still violations. So accidents or other non-deliberate acts can, and often will, result in a seizure of money by Customs.

For example, I know many of my clients are unaware of the reporting requirement. Others are aware of it but have a vague understanding of what it means for them, what is included as a monetary instrument, and how it is to be reported. Others know of the reporting requirement but think it does not apply in their situation. Finally, there are those who know it applies to them and they intend to make the report. But, when confronted by a uniformed Customs official they are intimidated, panic stricken, or their words are misconstrued. Then the official takes their nervous response for a “deliberate refusal” and tells them to be quiet while they search their bags. They are not given a further opportunity to to file a report or even make a verbal report.

Other times Customs officers will ask a question like: “How much money do you have on you?” or “How much money is in your wallet?” This question will trigger a truthful response like “a few thousand.” The problem with this scenario is that there may be only a few thousand in their wallet oron their person, but there is a bag in the trunk of their car or two fat envelopes in their checked baggage that has $15,000 in it. So in this case Customs has asked the wrong question, the person has given the correct response, and they are most likely going to get their money seized.

Obviously, I take issue with a question like “How much money is in your wallet?” because the real question should be “How much money are you transporting?” Sure, if you are a confident person, not intimidated by uniformed officers, and know the reporting requirement like the back of your hand then you might say, “Well, I have $2,500 in my wallet, but in my wife’s baggage there are two envelopes with a total of $9,860 and I have a notebook in my carry-on luggage with another €5,000, too.” This is the correct response to any question about your money, but who would think to respond like that when all they ask about is your wallet?

So because the person does not give a full disclosure and only answers the question asked by Customs, they will be taken to an area where the person thinks they will have a chance to make a report about what the officer didn’t ask about, count the money, and make the report. Then the officers conduct a secondary examination, searching their vehicle or their baggage and find all the money that was not reported to Customs — and they seize it, after lengthy questioning where the person misses their connecting flight or whatever appointments they might have.

Now here is the problem: The question about what is in their wallet is unfair if asked to try to elicit a violation of the reporting requirement. Yes, other questions are more fair, and more accurate. However, Customs does not have to ask anything at all. Knowing about the reporting requirement and making the report is entirely up to the person who is transporting the money. So even if Customs asks the trick wallet question, or they say nothing at all, you still have to file a report and file it correctly. My problem with trick questions is that it seems designed to elicit a violation rather than achieve compliance.

The story continues…

A Russian man learned that lesson the hard way after CBP officers seized $34,500 from him Thursday afternoon at Philadelphia International Airport. During a secondary examination, the Russian man claimed verbally and in writing that he possessed $9,000; however, CBP officers counted $35,000. CBP officers released $500 to the man for humanitarian relief and provided him directions on how to petition the U.S. government for the remaining currency.

This is just the standard petition process, but you also have other options. Usually the petition advice is not received until given the notice of seizure, which can come days, weeks, or even months after the money seizure occurs. The length of times varies on the investigation, case load, and size of the port.

CBP officers assessed a mitigated $1,000 penalty to another Russian man who arrived on the same flight. That man also reported possessing only $9,000; however CBP officers discovered a stack of bills in his baggage. All currency equaled $18,800.

Well, good for this man who got his money back on the scene – usually any mis-report by 5% or more will not be returned on the scene; however, if the total amount is $25,000 or less and no further investigation into the incident is deemed warranted and the traveler has documentation showing legitimate source and legitimate intended use and there is no nexus to criminal activity, then the money can be returned.

“Customs and Border Protection officers offer travelers multiple opportunities to truthfully report their currency, but those who refuse to comply with federal currency reporting requirements face severe consequences, such as hefty penalties, or having their currency seized, or potential criminal charges,” said Allan Martocci, CBP port director for the area port of Philadelphia. “The easiest way to keep your currency is to truthfully report it.”

I know that this is sometimes true, but I am also sure that this is not always true. I know many clients had opportunities to report transporting more than $10,000 in money but there are many have also been subjected to “zealous enforcement” and asked trick questions without sufficient opportunity to make, or amend, a report. Sometimes the philosophy of some Customs officers is to “seize first, ask questions later.”

My clients also report intimidating behavior while they are being detained, like back-slapping, laughter, high-fiving among officers about their seizure prowess, unfounded threats of criminal prosecution, and Dirty Harry type comments like, “This ain’t your first time at the rodeo.”

It is also true, as this news release says, that the easiest way to keep your currency is to report it; but Customs can still theoretically seize your money if you have under $10,000 and they think you are “structuring” to avoid to have to file a report, or if you report over $10,000 but lack good documentation about the source and use of the funds, or if they believe it has some connection to criminal activity.

The story continues…

Philadelphia CBP recorded three additional currency reporting violations recently and one ended in the seizure of $17,516.

CBP issued a mitigated $500 penalty to an Israeli man April 18 who claimed that he possessed $10,000; however CBP officers discovered an additional $860 in his pockets.

CBP issued a mitigated $1,000 penalty to a Swiss mother and her Israeli son April 10 after CBP officers discovered $23,146 in U.S. dollars, Swiss francs and Israeli shekels. The pair, who arrived from Switzerland, reported possessing a combined $10,100 U.S. dollars and 7,700 Swiss francs. CBP officers discovered multiple bundles of currency during a baggage examination and inside a travel pillow. [See, this type of discovery makes Customs suspicious — but if you are traveling internationally it makes perfect sense to keep the money in different locations in your personal effects so that if lost or stolen, not all your money is lost or stolen. But, in this case the different locations probably resulted in a a charge of failure to report and bulk cash smuggling.]

CBP issued a mitigated $1,000 penalty to a British man April 5 after CBP officers discovered that the man possessed $20,839 in U.S. dollars and British pounds. The man, who arrived from the United Kingdom, declared possessing only $9,000. CBP officers discovered several bundles of British pounds and two envelopes containing U.S. currency.

CBP seized $17,516 from a Nigerian woman who arrived March 29 after CBP officers discovered that she possessed $19,016. The woman claimed that she possessed $7,000; however CBP officers found more than $7,000 during an examination of the woman’s purse. CBP officers released $1,500 to the woman for humanitarian purposes and provided the woman directions to petition for the remaining currency.

In each case involving mitigated penalties, CBP officers required the travelers to complete a FinCEN form.

There is no limit to how much currency travelers can import or export; however federal law requires travelers to report to CBP amounts exceeding $10,000 in U.S. dollars or equivalent foreign currency.

U.S. Customs and Border Protection officers conducting outbound inspections selected a Mercedes sedan driven by [a male Mexican national], [aged] 29, of Nogales, Sonora, Mexico, for further inspection. During the search, officers found a concealed compartment containing 14 packages of U.S. currency. The vehicle and cash were seized. Lara was arrested and referred to U.S. Immigration and Customs Enforcement-Homeland Security Investigations.

The total for the concealed currency, which was seized, was more than $175,000 in U.S. currency. This individual was arrested and likely faces state or federal charges for bulk cash smuggling, or other similar violations. If he could prove legitimate source and legitimate intended use of the funds, then this situation is regrettable for him and completely avoidable.

So, if you have had currency seized from Customs, I strongly advise against trying to do it yourself. Get the help of an experienced attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring a lawyer who does not regularly handle these types of matters.

To inform yourself, please read the various articles I have written on this and related topics. But do not let it replace the advice of attorney who is familiar with the law and your particular circumstances. If you have questions, please give us a call at (734) 855-4999.

Customs & Border Protection discusses a recent money seizure in a news release available by clicking HERE. This time it was a Mexican national travelling from the U.S. to Mexico, who advised Customs that the items he was transporting in his truck were picked up at a swap meet. According to the story:

During the search of the truck, which was loaded with items the man said he purchased at a swap meet, officers found a box supposedly containing lawn furniture. The box actually contained seven packages of unreported U.S. currency totaling $348,840. The vehicle and cash were seized.

Then at the same port, on the same day and different man and vehicle were inspected, and:

During the search a zip-lock bag, a fast-food sack and a brownie mix box were discovered concealing unreported U.S. currency totaling $27,670.

A picture of this rich and chocolaty brownie mix was also included as part of the story.

These individuals were arrested and face charges for bulk cash smuggling under state law. If we assume he proves these two things, then this situation is regrettable for him and completely avoidable. But now, even if criminal charges are ultimately not filed or if they are ultimately found not guilty of a crime, they will still face civil forfeiture of the money and, if they want it back, will have to fight for its return administratively, or in the courts.If these individuals are found not guilty of a crime, then they face the potentially difficult task of proving a legitimate source and legitimate intended use of the money.

So, if you have had currency seized from Customs, I strongly advise against trying to do it yourself Get the advice of an attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring a lawyer who does not regularly handle these types of matters.

To inform yourself, please read the various articles I have written on this and related topics. But do not let it replace the advice of attorney who is familiar with the law and your particular circumstances. If you have questions, please give us a call at (734) 855-4999.

We bring these cases to our reader’s attention not because many honest people find themselves with thousands of dollars hidden underneath their vehicle’s floorboards in a secret compartment (although it has happened to some of my honest clients), but because they do allow me to bring to the public’s attention the laws surrounding the transportation of more than $10,000 in money across the border and seizure of that money.

Customs and Border Protection, in a recent news release discusses the seizure of $80,000 as a result of a failed smuggling attempt to take the cash out of the country in a

concealed compartment and without filing a currency report disclosing the source of the money and intended use of the money. Thus, it was seized and the driver arrested for smuggling.

The news release states as follows:

CBP currency detector canines searched the vehicle and alerted to the floor. CBP officers and Border Patrol agents continued their search and located a hidden compartment in the floor of the vehicle. They removed multiple tape-wrapped bundles of money in the compartment.

If this individual is found not guilty of a crime, then he faces the potentially difficult task of proving a legitimate source and legitimate intended use of the money. In this case, we could give the man the benefit of the doubt and presume the legitimate source is the proceeds the sale of valuable pieces of art to an eccentic U.S. art collector and the intended use, perhaps he was intending to open a small restaurant in Mexico City. That’s just my guess, and yes, I have handled more bizarre but true cases.

If we assume he proves these two things, then this situation is regrettable for him and completely avoidable. But now, even if criminal charges are ultimately not filed or if he is ultimately found not guilty of a crime, he will still face civil forfeiture of the money and, if he wants it back, will have to fight for its return administratively, or in the courts.

That brings me to the next point:

If you have had currency seized from Customs, do not go it alone. Get the advice of an attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring a lawyer who doesn’t regularly handle these cases.

To inform yourself, please read the various articles I have written on this and related topics. But do not let it replace the advice of attorney who is familiar with the law and your particular circumstances. If you have questions, please give us a call at (734) 855-4999.

Arizona news is reporting that a Mexican national was caught trying to smuggle $90,000 in U.S. currency. The individual transporting the currency is being held for bulk cash smuggling charges. The article has some interested pictures of the actual cash and its location. Apparently drug-sniffing dogs detected the presence of drugs in the vehicle (likely traces on the currency), which tipped them off the presence of the currency.

Legitimate source? Legitimate intended use? You be the judge!

You can read more about what constitutes bulk cash smuggling offense by clicking HERE. If you have had your cash seized by Customs you might find our article on responding to a U.S. Customs money/currency seizure helpful (click HERE to read it). You can also contact our office and speak to a customs attorney by call (734) 855-4999, or by clicking HERE.

CBP reports that a money smuggling attempt in Nogales, Arizona, was stopped. This story looks similar in dollar amount — $464,00 seized – amount as a money seizure by U.S. Customs and Border Protection near the Port of Laredo, which I blogged about here.

Picture of currency hidden in a nightstand.

This time, though, instead of the money apparently being hidden in the vehicle itself, it looks like it was hidden in a nightstand. Either way, hiding it is most likely going to result in a charge of smuggling, which is basiscally what bulk cash smuggling amounts to. This resulted in a seizure of the vehicle and the money itself.

For more information on money seizures by U.S. Customs, the reporting requirements, structuring violations, bulk cash smuggling, and how to get seized currency back, please visit our page devoted to discussion of currency seizures, and also read these articles:

And of course, if you have had your money seized by U.S. Customs and Border Protection, do not delay and call our office immediately at (734) 855-4999! You can also fill out our form and we will contact you, or drop us an e-mail by visiting our Contact page.

The Bangor Daily News out of Maine reports on some noteworthy monetary instruments seizures in 2012 by U.S. Customs, including this one:

In one incident the agency highlighted, two Houlton Border Patrol agents seized $89,808 in U.S. currency, $10,440 in Western Union traveler’s checks and $200 in Canadian currency from two men from Canada.

The money was apparently was connected with:

. . . a telephone fraud scheme that preyed on the elderly. The scam involved the subjects advising the elderly of a grandchild or other relative desperately in need of money, and instructing them to wire funds. The victims were subsequently bilked out of hundreds of thousands of dollars.

[ . . . ] The $100,448 initially seized by Border Patrol agents was returned to 18 of the victims.

No mention of the exact legal basis under which the money was seized, or exactly how this fraud scheme became unraveled at the border. I suspect somebody was trying to smuggling the money of the country to evade detection, and taxes, when CBP made the discovery and began putting the puzzle pieces back together.

If you have had currency seized from Customs, do not go it alone. Get the advice of an attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring an inexperienced lawyer. You worked hard for your money, so be sure to protect it. If you have questions, please give us a call.

To further inform yourself, please read the various articles I have written on this and related topics. But do not let it replace the advice of attorney who is familiar with the law and your particular circumstances.

That means if you are flying into the U.S. or leaving the U.S. from an airport or land border crossing and you are transporting more than $10,000, do not file a report, have concealed they money, or have divided the cash with others, U.S. Customs (CBP) may seize your money on-site, at the airport or border crossing.

A cash seizure while traveling is problematic because you will not be at your normal residence (or in your own country) for a period of time and you might not receive the CAFRA notice of seizure. The legal problem is that, as we explained in responding to a cash seizure, you might not receive the notice of seizure (because it’s lost or there’s no one to sign for it), or receive it too late.

A cash seizure when traveling overseas also creates problems even if you do receive the notice, because without representation, you will have to burden your friends or relatives with the lengthy and detailed process for getting your seized currency back from U.S. Customs, or because you will have to get them involved in your private and financial affairs.

But after hiring Great Lakes Customs Law as your customers lawyer, we can obtain the CAFRA notice of seizure on your behalf, and usually get it issued more quickly than normal. If we represent you, we make the process as seamless and simple as possible for you. By hiring Great Lakes Customs Law immediately after seizure, U.S. Customs will send the CAFRA seizure notice direct to our offices.

We then prepare the necessary petition with your cooperation and file it with Customs for you without your direct involvement. If you choose, we can directly receive the money in the form of a paper check, or via direct deposit into a bank account. If desirable, this returned seized money can then be wiredto your overseas bank account, which is something that Customs will not do.

We at Great Lakes Customs Law can represent you while you are staying overseas and you will not have to bear the additional burden and expense of making a return trip to the United States to gather evidence, submit your petition, or receive your money.

The Laredo Sun reports on a recent currency seizure by U.S. Customs and Border Protection in Laredo, Texas, from a 31 year U.S. citizen from Chicago who was transporting $460,060 as he attempted to drive across the border to Mexico. Something tipped the officers off as he left the U.S., and they pulled him and his vehicle aside for a secondary inspection to verify the amount of money being transported.

The money was apparently concealed in various parts of his vehicle. I can only imagine how long it took them to count it all out and the condition of the truck. If this individual is not prosecuted by the government for criminal violations, he faces the potentially difficult task of proving a legitimate source and legitimate intended use of the money (not to mention fitting all the plastic interior trim pieces back like new).

In this case, we could give the man the benefit of the doubt and presume the legitimate source is the proceeds of a life insurance policy of a beloved family member; and the intended use, perhaps he was paying cash for a nice place on the Riveria Maya. That’s just my guess, and yes, I have handled stranger cases.

If we assume he proves these two things, then this situation is regrettable for him and completely avoidable. But now, even if criminal charges are ultimately not filed or if he is ultimately found not guilty of a crime, he will still face civil forfeiture of the money and, if he wants it back, will have to fight for its return administratively, or in the courts.

If you have had currency seized from Customs, do not go it alone. Get the advice of an attorney who knows what he is doing. If you do not, you might only make the situation worse by handling it on your own or hiring a lawyer who doesn’t regularly handle these cases.

If you have had cash seized by customs and are contemplating what to do next, please inform yourself on the process by reading this article and then contact our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit.

What documents should I have gotten and what will I get?

At the time of a currency seizure, Customs probably gave you a “Custody Receipt for Seized Property and Evidence” form (6051S), which will have some different numbers at the top, including an FPF No. so that your case can be tracked at Fines, Penalties and Forfeitures office (“FP&F”) of Customs. This form should show what exactly was seized, the name of the seizing officer, and Customs’ contact information — usually for the local FP&F branch of Customs. FP&F should then send by certified mail a formal written notice of seizure (“CAFRA Seizure Notice” or “CAFRA Notice”). You should get it within a few days as long as Customs has your correct address, which they may have asked for during your initial detention at the border or port. You will have 30 days from the date on the letter (not the date the letter is received) to respond.We do not recommend contacting Customs by yourself until you have at least spoken to an attorney. Any statements you make to Customs, whether while you are being detained or by telephone, can be used against you. You may be panicked and say something that is misinterpreted by Customs as an admission of wrongdoing, or might make them suspect you are involved in something illegal. That will make it harder to get your money back. Therefore, we recommend contacting an attorney with experience in customs seizures immediately after receiving the CAFRA Notice. In any event, if you have not received this notice within 7 days of the seizure you should contact an attorney so they can request a copy of the notice of seizure for you, make sure that a timely response is made, or an extension of time to respond is requested and granted. This will help you make sure you preserve all your rights and options and improves your chances of successfully getting all or most of your money back.

CAFRA Notice of Seizure & Election of Proceedings

CAFRA stands for “Civil Asset Forfeiture Reform Act” and is, in our practice, the law that most of my client’s currency seizures fall under. After you’ve been detained and released, the CAFRA Notice you receive will have a basic explanation of the facts surrounding the seizure, including: the date and place of seizure, surrounding circumstances, and the facts Customs’ alleges are the basis for the seizure. The CAFRA Notice is a formal document, and should be treated and responded to as such. How and when you respond to the CAFRA Seizure Notice will determine the outcome of your currency seizure case!

Filing a Petition for Remission or Mitigation (including the right to file a Supplemental Petition after decision on the first Petition)

Pay the Full, Appraised Domestic Value of Seized Property

File an Offer in Compromise

Abandon the Property

Institute Judicial Proceedings

Do Nothing

The details of these options are explained in the CAFRA Notice, and Customs will include and ask you to complete and return what is called an “Election of Proceedings” form. This form will require you to select one of the above options. The advice we give to our currency seizure clients varies with the circumstances of each seizure case. Do not decide how to respond to a CAFRA Notice without first consulting an attorney. There may be times when a Judicial Proceedings make more sense than filing a Petition, and a qualified attorney can help you weigh those options and make that decision. Any mistake or error in judgment you make can cost you dearly. The majority of the time, however, I do recommend my client’s to file a Petition for Remission or Mitigation as the best option. The Petition, when filed by our office, is a legal memorandum that contains detailed factual narrative with our client’s side of the story, what led to the seizure, a review of the relevant law, regulations and Custom’s own guidelines concerning the seizure. When the facts allow for it, my Petition will always include a strong argument for return of the money in full, or even when there is a valid basis for the currency seizure, a strong argument for the money to be returned upon payment of a fine in the smallest amount of money possible, rather than forfeiture of all your money.

How can I find out more or hire a law firm to help with my customs currency seizure?

If you have had cash seized by customs and are contemplating what to do next, please make use of the other information available on this website or call our office at (734) 855-4999 to speak to a customs lawyer, or e-mail us through our contact page. We are able to assist with cash seized by customs around the country, including Chicago, Atlanta, New York, Los Angeles, Orlando and many other places, and not just locally in Detroit. Please read these other articles:

Great Lakes Customs Law

The customs law firm represents importers, travelers, and brokers in administrative proceedings before US Customs & Border Protection (USCBP) and at the Court of International Trade and Federal district court.